Arbitrum (ARB), a prominent Ethereum (ETH) layer-2 scaling solution, has recently announced the launch of its Atlas upgrade, a significant development poised to reduce transaction fees and enhance the efficiency of its network. This upgrade is particularly notable for the South African crypto community, offering a more cost-effective way to engage with decentralized applications (dApps) on Ethereum.
Offchain Labs, the innovative team behind Arbitrum, has successfully implemented the ArbOS 20 upgrade, known as “Atlas,” across the Arbitrum network. This upgrade includes the integration of Ethereum’s Dencun support and the introduction of blob transactions, which are designed to streamline data processing while minimizing costs. With the activation of Atlas, Arbitrum anticipates further reductions in execution transaction fees, set to commence on March 18th.
Initially, the Atlas upgrade will focus on reducing layer-1 (L1) posting fees via EIP-4844, with additional fee reductions expected in the following week. Arbitrum aims to eliminate the L1 surplus fee per compressed byte from 32 gwei to zero and reduce the layer-2 (L2) base fee from 0.1 gwei to 0.01 gwei. This means applications on Arbitrum One can benefit from the new pricing model without requiring any adjustments.
Layer 3 Rollup chains built on Arbitrum One will automatically benefit from reduced fees, while self-governed Orbit L2 rollup chains are encouraged to adopt the ArbOS Atlas upgrade to enjoy similar advantages. Offchain Labs has also confirmed that Arbitrum RaaS (Rollups-as-a-Service) providers, including Altlayer, Caldera, Conduit, and Gelato, have pledged to upgrade their Orbit chains to support both the Atlas and Ethereum Dencun upgrades.
Furthermore, the Atlas upgrade aligns Arbitrum (ARB) with the EVM’s security standards through the inclusion of support for EIP-6780, laying the groundwork for future enhancements to the EVM. This optimization of transaction costs opens the door for previously impractical use cases in gaming, SocialFi, and DeFi exchanges, marking a pivotal moment for the Ethereum ecosystem’s adoption in South Africa and beyond.
Before Atlas, the Arbitrum Nitro upgrade in August 2022 marked a significant step forward in addressing Ethereum’s scalability challenges by increasing network capacity and speed. This upgrade aimed to improve transaction throughput and efficiency, establishing a more scalable Layer 2 solution.
In a related development, the Arbitrum DAO retracted a proposal to donate approximately $1.28 million worth of ARB tokens to cover legal expenses for Tornado Cash developers, following concerns from token holders about potential legal liabilities. This decision reflects the community’s commitment to legal clarity and responsibility within the cryptocurrency sector.
The Atlas upgrade, by lowering transaction costs and enhancing network performance, is set to bolster the adoption of Arbitrum in South Africa, offering a more accessible and efficient platform for users and developers alike in the burgeoning local crypto ecosystem.
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